Federal Direct Parent and Graduate PLUS Loan

The Federal Direct PLUS Loan enables parents and graduate students to borrow to pay educational expenses, of the child who is a dependent of the parent, or graduate student, who is enrolled at least half-time. The parent or graduate student is the borrower for this loan program.

To be eligible for a Federal PLUS Loan you must:

  • Pass a credit check
  • Meet citizenship requirements
  • The student must be enrolled at least half-time in a degree-seeking program

How to Apply:

Go online to studentaid.gov. Sign in with the parent FSA ID. Click on the Parent Borrowers Tab.

  1. A Federal PLUS Loan Application must be completed annually.
  2. A Loan Agreement for a Federal PLUS Loan (Master Promissory Note) must be completed the FIRST time a family applies for a Federal PLUS loan.  

Terms of the Loan:

Interest: The interest rate on the Federal Direct PLUS loan is fixed at 6.28% for the 2020-21 school year. Interest begins to accrue at the time of the first disbursement.

Loan Fees: A fee of 4.228% is withheld from the principal loan amount at disbursement. Please plan on this when determining your loan amount.

Loan Limits: The yearly limit is equal to the cost of attendance minus any other financial aid the student receives.

Repayment: Effective July 1, 2008, the borrower may choose to defer payments on a Federal PLUS loan until six months after the date the student ceases to be enrolled at least half-time. Accruing interest could either be paid by the borrower monthly or quarterly, or be capitalized quarterly. There is no penalty for paying the loan in full early.

Additional Information

For more details about the Federal PLUS Loan, go to the U. S. Department of Education's Direct Loan information brochure.